A manufacturer is preparing to set the price on a new action game. Demand is thought to depend on the price and is represented by the model:
D = 2,000 - 3P
The accounting department estimates that the total costs can be represented by:
C = 5,000 + 4D
a. Develop a model for the total profit and implement it on a spreadsheet.
c. Use SOLVER to find the price that maximizes profit.
The solution provides a detailed explanation how to use solver to find the maximal value.